After falling 11.8% in October, India’s merchandise exports have returned to the growth zone in the first three weeks of November, reflecting lower-than-expected hit from the hefty US tariffs, and explorers’ ability to promptly diversify destinations.
“In the month of November there is significant growth (in exports). Growth is visible in many sectors including seafood,” Commerce and Industry Minister Piyush Goyal said on Tuesday. “Services of course are showing significant growth and collectively India’s exports continue to be on the upward trajectory,” he added.
“All our key exports (segments) are positive,’ Commerce Secretary Rajesh Agrawal said.
The country’s goods exports stood at $34.38 billion in October, the first full month after 50% additional US tariffs on most Indian goods came into force. The trade deficit in the month widened to a record high of $ 41.68 billion, mainly due to a jump in gold and fertiliser imports
During April-October this fiscal, exports increased marginally by 0.63% to $254.25 billion, and imports rose 6.37% to $451.08 billion.
What did Goyal say?
Goyal said the discussion on the FTA with Russia-led Eurasian Economic Union (EAEU) will commence from Wednesday. The economic bloc also includes Armenia, Belarus, Kazakhstan and Kyrgyzstan.
He said there is “a lot of enthusiasm” over the Comprehensive Economic Partnership Agreement that India and Canada have agreed to negotiate on Sunday. “ We will probably follow it up with the initial engagement with Canada very soon and kick-start the process.”
“Canada negotiations will be based on the circumstances in Canada, areas of their interest, areas of our interest, sensible items on both sides which have to be kept out.”
On the trade agreement with Israel for which the Terms of Reference (toR) were finalised last week, the minister said negotiations would commence soon for an early harvest of the first tranche of the deal. “We have tremendous interest in their innovation, in their agritech, fintech and other deep tech areas of work. Where we are interested in mobility and services in a big way,” he added.
The minister also informed that there is potential for talks for a trade pact with Southern African Customs Union (SACU) which comprises South Africa, Namibia, Botswana, Lesotho and Eswatini. It is the world’s oldest customs union.
Norms for interest subsidy scheme soon
Commerce and Industry Minister Piyush Goyal on Tuesday said the recently approved Rs 25,060 crore Export Promotion Mission (EPM) would include targeted schemes to help landlocked states enhance their competitiveness in the export sector.
The minister said the government would come with the guidelines of the interest subsidy scheme for exporters soon. “We want to finish (issuing guidelines) by January 15. Interest Equalisation Scheme (IES) and Market Access Initiative (MAI) will be the first ones (for which the guidelines would be issued,” the minister said after the 4th meeting of the Board of Trade here.
On November 12, the Cabinet approved the EPM ith an outlay of Rs 25,060 crore for six financial years, beginning 2025-26. The mission will be implemented through two sub-schemes — Niryat Protsahan (Rs 10,401 crore) and Niryat Disha (Rs 14,659 crore).
IES will provide interest subsidy on pre- and post-shipment credit to exporters while the MAI will fund marketing activities through participation in international trade fairs, buyer-seller meetings and branding.
Goyal also called for a strong centre-state partnership to boost export growth.
The board, reconstituted in 2019, serves as an apex advisory body on policy measures related to the Foreign Trade Policy.